Eratat Lifestyle

Eratat Lifestyle: Voyage has an Increase Exposure rating with $0.28 TP. House reiterate that Eratat has showed progress in its distribution and sales strategies, as new distributors have been signed up and the relationship based sales model will be implemented at these new outlets. The company is also targeting to open two to three self-owned stores in Shanghai in 1Q FY14. Voyage like the progress made by Eratat to add new distributors and to open self-owned stores, with a potential for Increased financial contribution in 2Q 2014 from these initiatives when sales at both new distributors and the new self-owned stores start to ramp up. Eratat has been reducing footwear sales in favour of apparel products. In 3Q FY13, the number of pieces of apparel products sold grew by 11% year-on-year, while the number of footwear sold fell by 32% year-on-year. House expect overall sales to resume its growth as footwear sales volume stabilizes. Core focus area apparel products continued to grow.